10 Best Seasonal Stocks To Buy According to Hedge Funds

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1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 76 

Starbucks Corporation (NASDAQ:SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. In earnings for the first fiscal quarter of 2025, the firm posted consolidated net revenues of $9.4 billion, flat to the prior year. Operating margin contracted 390 basis points year-over-year to 11.9%, primarily driven by deleverage and investments in support of Back to Starbucks, including store partner wages, benefits and hours, and the removal of the extra charge for non-dairy milk customizations. TD Cowen kept with a Buy rating on the stock following the report. Analyst Andrew Charles said the firm prioritized positive commentary on January trends and management expectations for FQ2 comparable sales over its lowered 2025 EPS estimate, due primarily to elevated restructuring G&A as a result of streamlining the support center.

While we acknowledge the potential of Starbucks Corporation (NASDAQ:SBUX) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Starbucks Corporation (NASDAQ:SBUX) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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